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This week, I would like to highlight a number of the proposals introduced this session that have the intent of reducing property taxes.
Both the Education Committee and the Revenue Committee have held public hearings on these measures now that there has been some time for agencies and groups to analyze many of the different measures.
LB1182 and LB1183 represent the two components of the so-called Apple Tax Plan that is sponsored by the group known as Advocates for All Nebraskans.
LB1182 would establish a statewide minimum base salary of $50,000 for all full-time certificated teachers, regardless of experience or educational attainment, beginning in the 2027-28 school year.
This new funding system is intended to ensure a majority of school funding is directly tied to teacher salaries property taxes for operational expenses.
LB1183 would reduce the taxable valuation for all property types to 50 percent of their market value.
Specifically, residential and commercial property would be taxed at 50 percent of market value (down from 100 percent) while agricultural and horticultural properties would be taxed at 37.5 percent of market value (down from 75 percent).
LR292CA would change how property taxes are calculated. The measure would establish two separate values for property: a “fair market value” set by county assessors, and a “taxable market value” based on the purchase price of the property. Under the proposal, the taxable value of the property would only increase by the rate of inflation until the property is sold.
LR317CA and LB1219 would both limit the total amount of annual property taxes that may be levied by any political subdivision to 2 percent plus real growth.
LB1244 and LB1257 would eliminate sales tax exemptions on a wide range of goods and services with the intention that any such revenue be directed towards property tax relief.
A similar bill LB1109 would repeal or otherwise eliminate various tax credits and tax exemptions with the same intention to bring in additional revenue for property tax relief.
LB990 would specify that the $750 million in property tax credits provided for under the provisions of the School District Property Tax Relief Act be distributed to only the real property owned by Nebraska resident individuals as defined in state law. Currently, property tax credits provided under the School District Property Tax Relief Act are distributed to property owners regardless if such individuals live and reside in Nebraska.
LB1038 seeks to drive down property taxes in higher levy school districts by increasing state funding of those schools. This would be done by changing several mechanisms of TEEOSA, including dropping the maximum levy rate from $1.05 to $0.50 per $100 of taxable valuation, instituting a $0.30 base levy adjustment, repurposing the property tax credits authorized under the Property Tax Credit Act and the School District Property Tax Relief Act, and maintaining school district general fund levy rates within a $0.20 range by using existing state resources.
The Legislature is now approaching the half-way mark of this current 60-day legislative session. As public hearings begin to wrap up, the introducing senators will work with the legislative committees on amendments to try and address any identified issues brought up by testifiers. Next week is the deadline for senators and committees to designate their priority bills for the session. Once all of those designations have been set, it will become clearer which property tax proposals and other pieces of legislation will likely be advanced to the floor and debated later in this session.
I invite you to let me know your concerns. My number is (402) 471-2801 while my email is [email protected].
My mailing address is: Senator Barry DeKay, District #40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
mailto:[email protected]
